Payment of royalty upto 2% on exports and 1% on domestic sales under automatic route for use of trademark and brand name of the foreign collaborator
Show AI Summary
Royalty on trademark and brand name permitted under automatic route; calculation tied to net sales after specified deductions.
Royalty for use of a foreign collaborator's trademark and brand name is payable under the automatic route and, where technology transfer occurs, is subsumed by the technology royalty. Royalty must be calculated as a percentage of net sales, with net sales defined as gross sales less agents'/dealers' commission, transport costs including ocean freight, insurance, duties, taxes and other charges, and the cost of raw materials, parts and components imported from the foreign licensor or its subsidiary/affiliate.